Swiss Government Moves Closer to Landmark Free Trade Deal with India

The Swiss government has proposed a free trade agreement with India to parliament, marking a significant milestone in its trade policy. The deal, including other EFTA members, aims to lift tariffs on industrial products and expects $100 billion in investments from India. Parliamentary approval is pending.

The Swiss government has submitted its proposed free trade agreement with India to parliament, highlighting a crucial step towards opening up the world's most populous nation to Swiss exports. The deal, involving the European Free Trade Association (EFTA) which includes Iceland, Norway, and Liechtenstein, marks a 'significant milestone' in Swiss trade policy, according to government sources.

Under the pact, India is slated to lift import tariffs on industrial products from these four countries in exchange for a $100 billion investment over the next 15 years. The treaty, signed in March, still requires parliamentary approval before it can take effect, with debates expected in the spring and winter sessions.

Having taken 16 years of negotiations, the agreement plans to reduce tariffs on nearly 95% of Swiss exports to India. Given India's status as the world's most populous nation, the growing middle class represents substantial growth potential, the government noted. Currently, Swiss exports to India are minimal, representing just 0.7% of Swiss international sales in 2023, according to the Federal Customs Office.

(With inputs from agencies.)